devaluation

American  

[dee-val-yoo-ey-shuhn] / diˌvæl juˈeɪ ʃən /

noun

1. an official lowering of the exchange value of a country's currency relative to gold or other currencies.

2. a reduction of a value, status, etc.

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devaluation British  

/ diːˌvæljuːˈeɪʃən /

noun

1. a decrease in the exchange value of a currency against gold or other currencies, brought about by a government Compare depreciation

2. a reduction in value, status, importance, etc

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devaluation Cultural  

1. A policy undertaken by a nation to reduce the value of its national currency either in relation to gold or in relation to the currencies of other nations.

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Other Word Forms

• minidevaluation
  noun
• predevaluation
  noun
• postdevaluation
  adjective

Etymology

Origin of devaluation

First recorded in 1910–15; devaluate + -ion

Explanation

Devaluation is when the worth of something is underestimated. If nobody appreciates your corny jokes, you might say, "The devaluation of humor in this family is truly tragic!" You can use the word devaluation for anything that isn't fully appreciated or valued, but it's more often used in an economic context. When a government deliberately lowers the value of its currency, as it compares to other countries, that's devaluation. It's one way to lower the cost of exporting goods, and it sometimes helps repair an ailing economy. Devaluation comes from value, "worth or price," and its Latin source, valere, "be strong."

Example Sentences

See Examples For:

devaluation

But that sweeping generality about serenity’s devaluation could easily apply to any culture, Hayao Miyazaki might say.

From Salon ● Jul. 15, 2026

It represents a devaluation of almost 40 percent over the rate of 6.96 pesos at which the authorities pegged the dollar in 2011.

From Barron's ● Jun. 29, 2026

Just over a week ago, the dollar index fell to a four-year low on fears of a more prolonged devaluation in the U.S. currency.

From MarketWatch ● Feb. 9, 2026

Wu-Tang Clan envisioned the unique album and its secrecy as a form of protest against the devaluation of music in the era of streaming.

From The Wall Street Journal ● Feb. 6, 2026

The government responded to this situation with a package of stabilization reforms on 28 October 1995 which included a 7% devaluation of the rupee, supplementary duties of 10% on many imports, and higher petroleum prices.

From The 1996 CIA World Factbook by United States. Central Intelligence Agency

Related Words

• decline
• decrease
• reduction
• weakening